Nonbinding Constraints Will Always Have Slack,which Is the Difference Between

question 67

True/False

Nonbinding constraints will always have slack,which is the difference between the two sides of the inequality in the constraint equation.

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Definitions:

Rational Consumer

An assumption in economics that consumers always make logical decisions that provide them with the highest level of personal utility.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.